Institutional changes of Specified Purpose Acquisition Companies (SPACs)

Milan Lakicevic, Yochanan Shachmurove and Milos Vulanovic

The North American Journal of Economics and Finance, 2014, vol. 28, issue C, 149-169

Abstract: This study documents the changes in the corporate design of modern Specified Purpose Acquisition Companies (SPACs) for the years 2003–2012. Do institutional characteristics of SPACs determine the success of their merger outcomes? The paper finds that SPACs significantly redesigned their structure in the period under observation. In addition, the probability of a merger for SPACs increases if they are able to announce the deal soon after the Initial Public Offering (IPO), if the deal focuses on China and when their IPO is underwritten by Early Bird Capital.

Keywords: Specified Purpose Acquisition Companies (SPACs); Blank checks; Mergers and acquisitions (M&A); Initial public offering (IPO); Unit IPO; Warrants; Reverse mergers; Private equity; China (search for similar items in EconPapers)
JEL-codes: G12 G14 G24 G30 G32 G34 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: On Mergers, Acquisitions and Liquidation Using Specified Purpose Acquisition Companies (SPACs) (2013)
Working Paper: Institutional changes of SPACs (2013)
Working Paper: Institutional changes of SPACs (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:28:y:2014:i:c:p:149-169

DOI: 10.1016/j.najef.2014.03.002

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